Baylor Board of Regents Discusses Higher Education Challenges, Affirms Commitment to Student Experience, Long-Term Strength

Contact: Lori Fogleman, 254-709-5959
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During its regular fall meeting, the Baylor University Board of Regents received updates on a range of issues affecting higher education and Baylor University, as institutional leaders continue efforts to position the University for long-term success.

The Board heard reports from Baylor President Linda A. Livingstone, Ph.D., and several campus administrators regarding the rapidly changing higher education landscape, including demographic shifts, increasing competition for students, financial pressures across the industry and the growing influence of artificial intelligence.

“As the Board and President Livingstone have indicated over the past 18 to 24 months, the entire higher education industry is experiencing significant change, and Baylor is not immune,” said Board Chair Todd Patterson, B.S. ’90, J.D. “Baylor has a distinct value proposition as a Christian Research 1 university with an unmatched student experience, while also competing at the highest levels of intercollegiate athletics. We are strategically leveraging these strengths to attract students and further our Christian mission.”

Universities nationwide are navigating challenges associated with the enrollment cliff, drastically changing financial models, investments associated with intercollegiate athletics and the integration of emerging technologies, including AI. While these realities are creating financial pressures throughout higher education, the Board reaffirmed its commitment to ensuring Baylor remains well-positioned to meet the challenges now and in the future.

“Baylor must be bold and creative, while advancing our historic strengths like a renowned undergraduate student experience, and adhering tightly to our strong position as a Christian R1 institution,” President Livingstone said. “Baylor has a long legacy of providing a transformational education where faculty and staff play a central role, and at this critical juncture in higher education, we must all refocus on what has made Baylor special for more than 180 years.”

The Board discussed Baylor’s nationally recognized undergraduate student experience, including the University’s Top 10 U.S. News & World Report rankings for Learning Communities (No. 3) and First-Year Student Experience (No. 9). Regents emphasized the importance of maintaining premium student services, experiences and facilities that support student success, approving a classroom renovation project in Morrison Hall. The project, which will not exceed $5.5 million, is part of Baylor’s ongoing classroom modernization efforts.

Because Baylor’s operating budget is funded primarily through student tuition and philanthropic support, Regents also discussed the increasingly competitive environment for student recruitment and enrollment trends. University leaders noted that fewer students are able to afford a private education, while many who can afford it are increasingly choosing public institutions or schools closer to home. 

In anticipation of these shifts, in February 2025 Baylor announced the Extend the Line Scholarship initiative, which aims to raise $250 million by 2030 for student scholarships and support. The initiative has already raised more than $124 million, putting the University ahead of its projected goals for the five-year effort.

In her report to the Board, President Livingstone highlighted several recent University achievements, including Baylor’s record four-year graduation rate of 77.5%, an important measure in improving affordability for students and families. She also reported a graduate placement rate of 92% and an overall success rate of 94%. Placement rate measures graduates securing employment in their field of study, while success rate includes employment of any type, graduate school enrollment and internships.

The Board reiterated the importance of reducing operating expenses to help slow the rate of future tuition increases for students and families who might consider Baylor. Regents also approved revisions to the University’s investment policy to incorporate strategic allocation ranges for the endowment. Baylor’s $2.56 billion endowment remains strong, generating annualized 10-year returns of 11.3%, which exceeds national benchmarks. During the past year, the endowment distributed $101 million to support scholarships, professorships and academic programs across the University.

“With the many financial strains and stressors impacting the higher education sector, maintaining the status quo is not an option,” Chair Patterson said. “Baylor has delivered the quintessential collegiate experience wrapped in a Christian mission throughout its history and ensuring that experience continues will be our focus for the foreseeable future. The pressures Baylor faces are undeniable, but alignment between the Board and University administration is evident, and together we are fully committed to ensuring Baylor thrives in the future.”

President Livingstone informed the Board of Baylor’s membership in the Consortium for Evaluation of Faith and Ethics in AI, alongside Brigham Young University, the University of Notre Dame and Yeshiva University. The consortium explores how artificial intelligence systems interact with concepts of religion, faith and ethics. In addition, Regents received several reports during the meeting on AI-related initiatives across campus, recognizing the technology’s growing role in university operations, teaching and learning.

ABOUT BAYLOR UNIVERSITY

Baylor University is a private Christian University and a nationally ranked Research 1 institution. The University provides a vibrant campus community for nearly 20,000 students by blending interdisciplinary research with an international reputation for educational excellence and a faculty commitment to teaching and scholarship. Chartered in 1845 by the Republic of Texas through the efforts of Baptist pioneers, Baylor is the oldest continually operating University in Texas. Located in Waco, Baylor welcomes students from all 50 states and more than 80 countries to study a broad range of degrees among its 12 nationally recognized academic divisions. Learn more about Baylor University at www.baylor.edu.